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September 14, 2022
2022-1374

Mexico’s proposed 2023 Economic Package includes minimal changes to tax law

  • The 2023 Economic Package does not include any new taxes or tax reforms.
  • The focus in on strengthening the tax base by combatting tax avoidance.
  • It is expected to be effective as of 1 January 2023.

On 8 September 2022, Mexico's Economic Package for fiscal year 2023, which details the projection of income and public spending (the Proposal), was submitted to the Congress.

The Proposal does not foresee increasing, changing or creating new taxes. Unlike most years, the Proposal does not include any reforms to the tax laws. Rather, there is a focus on strengthening the tax base by combating tax avoidance.

The Proposal includes measures intended to encourage taxpayers' self-correction by reducing the amounts of fines by 40% or 50% for noncompliance with respect to obligations related to the Mexican Tax Registry, tax filings and book keeping, depending on the time of the correction.

Furthermore, the Proposal maintains the tax incentives related to certain specific areas such as public and private ground transportation, mining, and diesel, among others.

Mexico's two houses of Congress must debate and vote on the Proposal. This should be completed by 15 November 2022. Therefore, and although it is unlikely, changes could be expected through the legislative process. After congressional approval, the President would sign and publish the Proposal in the Mexican Federal Official Gazette. The Proposal will become law on the date of publication and should be effective as of 1 January 2023.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young, LLP (United States), Latin America Business Center, New York

Ernst & Young LLP (United States), Latin America Business Center, Chicago

Ernst & Young LLP (United States), Latin America Business Center, Miami

Ernst & Young, LLP (United States), Latin America Business Center, San Diego

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific

 

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